Industry experts have warned that "tough but necessary" choices could lie ahead in the Autumn Budget, following Chancellor Rachel Reeves' pre-Budget speech this morning (4 November).

Speaking this morning, Reeves acknowledged that "there is a lot of speculation about the choices" the government will make, admitting that "these are the important choices that will shape the future of our country for years to come".

Reeves emphasised, however, that "the world has thrown even more challenges our way", pointing out that there is growing pressure on defence spending and on public finances.

"The Prime Minister, the Secretary of Work and Pensions and this whole government are committed to reforming our welfare state… …so that it is not a system that counts the cost of failure… but one that invests in success and protects those who need it most," she stated.

"No accounting trick can change the basic fact that government debt is sold on financial markets.

"There are limits on the price that banks, hedge funds and pension funds are willing to pay for our debt… and we are competing constantly with other countries also selling debt.

"In the Budget and beyond, I will continue to drive for more productive and more efficient public services, right across government…making savings and rooting out waste wherever I find it."

Reeves also stressed the need "not to be swayed by political convenience… …not to always do what is popular, but to do what is right".

Commenting after the speech, PensionsBee VP of personal finance, Maike Currie, said that Reeves was "ripping off the band-aid - albeit slowly and deliberately".

"By signalling her intent ahead of time, she’s preparing the ground for tough but necessary fiscal choices," she stated. "This approach sets the stage for what could be one of the most consequential Budgets in recent memory.”

This was echoed by Rathbones chartered financial planner, Charlotte Kennedy, who suggested that, in particular, the Chancellor’s pre-Budget speech "effectively lays the groundwork for tax rises, seemingly intended to soften the blow at the end of the long run-up to the Budget".

“Over the past few weeks, client concerns have centred on pensions, income tax and inheritance tax, as it has become increasingly clear that trimming around the edges won’t be enough to address the multi-billion-pound shortfall in public finances - a gap that has only widened during the extended lead-up to the Budget," Kennedy stated.

“As always, it’s important to avoid knee-jerk reactions based on speculation. There are still sensible steps individuals can take - such as fully utilising ISA and pension allowances - that remain beneficial regardless of what the Budget may bring.”

However, the growing speculation has already prompted many savers to take action, particularly on pensions, sparking a wave of concern from industry experts.

Indeed, research from Hargreaves Lansdown found that the most popular actions ahead of the Budget are paying into a cash ISA, paying into a pension, and paying into a stocks and shares ISA.

The research suggested that these are also the three things that people said they were most likely to do purely because of Budget speculation.

In particular, Hargreaves Lansdown found that 6 per cent of people over the age of 55 have taken tax- free cash from their pension ahead of the Budget, while 2 per cent have taken tax-free cash purely because of Budget worries.

However, despite concerns over the long-term impact of these choices, Hargreaves Lansdown head of retirement analysis, Helen Morrissey, suggested that "if you’ve got the spare cash, it’s a real no regrets move that can boost your retirement resilience with 8 per cent of people overall saying they had upped their contribution in response to Budget rumours.

"When we look at higher-rate taxpayers, the figures surge, with almost one quarter (23 per cent) of people saying they topped up in response to Budget rumours and 25 per cent saying it was something they would have done regardless of rumours," she stated.

"With tax relief available at your highest marginal rate, it’s a compelling incentive to make the most of your pension planning."

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